A “yes” vote on Proposition B would increase the statewide minimum wage to $8.60 per hour effective January 2019. The hourly wage would then increase each subsequent year by 85 cents, through 2023, resulting in a minimum wage of $12 per hour. Currently, minimum wage is $7.65 per hour.

The penalty for employers who pay less than the minimum wage would increase, however, government employers and retail and service businesses with an annual gross income less than $500,000 are exempt from the state minimum wage. According to ballot wording, the proposition could increase business operating costs by an unknown but possibly significant amount.

Following 2023, the minimum wage would increase or decrease each year in accordance with the consumer price index.

There are no estimated costs or savings as a result of the passing of Proposition B and tax revenue for state and local governments could range from a $2.9 million decrease to a $214 increase.

In an email, Southeast economics professor of economics William Weber said low minimum wage has been especially harmful to demographics with high rates of unemployment, sometimes leading workers toward illegal forms of income.

A common argument, Weber said, is that workers lack bargaining power. The counterpoint though, is that a competitive marketplace makes it difficult for employers to band together to make wages low.

In competitive labor markets, he said, workers tend to earn a wage equal to the value of what they produce, but industries with lower profit margins will likely shed employees as a result of forced wage increase.

“Robots can flip hamburgers and people can order from a computer screen rather than having their order taken by a person,” he said.

He referenced Amazon, which recently announced an increased wage for workers, but also did away with bonuses and shared stock programs.

“The same thing would likely happen with a higher legal minimum wage,” he said. “Firms would pay higher money wages, but likely cut back on fringe benefits and training which allows employees to advance.”

Weber said he believes governments, citizens and society should ensure all workers have some minimum level of well-being and subsistence, but the minimum wage is a poor way to do that, because it burdens employers in some industries such as fast food, while having no effect on others, such as healthcare, where employees already make more than that set wage.

“Many minimum-wage workers are teenagers and it is true that they earn low income, but are not poor since they tend to live at home and have shelter [and] food provided for them,” Weber said.

A majority of student employment jobs though, which are offered through the university, pay minimum wage and for future student workers that is likely to have a substantial impact.